Beware of MLM Scams!

Written by Daegan Smith

Most MLM programs are legitimate businesses, however consumers must be aware of MLM scams. A true MLM program will sell products torepparttar general public without requiring them to pay anything extra or any hidden costs. They will not force consumers to joinrepparttar 137246 MLM system to be a distributor themselves. These types of systems pay commissions to distributors based on actual product sales, not for recruiting. However, there is a danger that any program that concentrates more on new members rather than product sales could be a MLM scam.

An example of a MLM scams is an illegal pyramid scheme. This is where a company promises huge profits from investments into their program. The money is actually made from drawing new people intorepparttar 137247 scheme rather than actual retail sales of real products. Many pyramid schemes pretend to sell actual products, they actually donít. A signal that a program is such a MLM scam is when you never see actual products. Products consistently on backorder or orders that never arrive are also signs of a scam.

Another MLM scam is called a Ponzi scheme. This is very similar to a pyramid scheme, howeverrepparttar 137248 main difference is in a Ponzi scheme there is not an actual product to begin with. Also, no commission is paid to recruit new members. The operators make their money offrepparttar 137249 sting by promising huge, quick returns from an investment. The money collected from new members is used to pay off other members that have been inrepparttar 137250 program longer. They are given a small return compared torepparttar 137251 huge promises. The largest part ofrepparttar 137252 money goes intorepparttar 137253 promoterís pocket.

How To Start A MLM Business

Written by Daegan Smith

When considering whether to start a MLM business, begin with a good look at yourself. You must determine your needs and motivations to see if running a MLM business is right for you. What are your goals? What amount of income do you need forrepparttar business to provide? Do you want to work full or part-time? Do you need additional training to startrepparttar 137245 business? What will my start-up costs be? A world of questions must be answered before venturing out intorepparttar 137246 world of direct marketing.

If you choose to start a MLM business of your own, you will find yourself in good company. Today, multilevel marketing is big business. There are large multinational corporations doing business as MLMs such as Amway and Mary Kay. Chances are you are considering being a distributor of such a company. They offer good products along will training and support programs to help you get your business on its feet.

The financial requirement to start

Cont'd on page 2 ==> © 2005
Terms of Use